Chinese Uber rival Didi launches in Mexico, recruits drivers
SAN FRANCISCO (Reuters) - Chinese ride-hailing company Didi Chuxing has publicly launched in Mexico with a website advertising its service to drivers and passengers, setting the stage for a potentially expensive showdown with rival Uber.
A spokesman for Didi Chuxing Technology Co told Reuters that the company will launch first in Toluca, an urban hub located around 60 kilometers (37 miles) from the country’s capital. Didi has an operations hub in the trendy Juarez neighborhood in Mexico City.
Didi settled on Toluca, the capital of the central state of Mexico, because it is a “robust regional commercial and cultural” center, said the spokesman, who declined to be named. Its priority will be to learn from local communities about their transportation needs, the spokesman said.
The app will go live later this month, according to a source familiar with the plans.
The Didi spokesman declined to comment on the timeline. Didi’s Mexico website says the company will begin operations “very soon,” without providing a date.
Meanwhile, Didi is working to quickly recruit drivers with the promise of higher earnings than competitors are offering. The new Didi website says the company will take no cut of fares until June 17, and is offering bonuses to drivers who recruit other drivers and passengers, a common tactic for ride-hailing companies vying to gain market share.
After mid-June, Didi is planning to take a 20 percent cut of fares, below the 25 percent commission on rides in Mexico charged by its biggest rival, Uber Technologies Inc .
Late last year, Didi started laying plans for Mexico, Reuters reported, in what will be the company’s first launch outside Asia. Mexico’s clogged streets, underdeveloped public transit system and growing base of smartphone users make the country ripe for app-based ride services.